6 ways to avoid bad tenants
As a landlord, you always want to trust that your tenants are going to pay their rent on time every month. But as we know, that doesn’t always happen. You need to follow some simple steps to ensure that it doesn’t happen to you. Here we look at the six most important ways to avoid bad tenants.
Thorough background checks
Background checks can be a hassle but they are vitally important. Credit checks can be a clear indicator that someone is going to struggle with their rent. After that, there is employment status, previous rental information and also references to check.
Get a deposit
A deposit is there to give you security should anything go wrong with the property. If there are issues then you can decline to release it back to the tenant. Usually the deposit is equal to one month’s rent, but don’t be afraid to ask for more.
Get guidance on the tenancy agreement
The tenancy agreement can be vital in enforcing certain terms and conditions. It needs to be well written to avoid missing anything or creating loopholes. If you’re unsure, it’s a good idea to seek legal advice to make sure it’s watertight.
Don’t be afraid to say no
Trying to find a new tenant can sometimes be a hassle. It leaves you with the temptation of accepting someone who you might not feel is the perfect fit. It’s fine to say no and sometimes a little delay is a good idea to make sure you’re getting a good tenant.
Start with a 6-month agreement
If a tenant has their heart set on a place then there is a good chance that they will accept a 6 month contract. It isn’t a long time, especially when you already have a deposit. If that period is successful, you can then move on to a longer contract.
Meeting face-to-face is a hassle for some landlords, but it allows you to see exactly who you are renting your property to. You will be able to make a better judgment of whether or not they are right for you.
If all that fails, then it’s time to take action. If you need to collect a rent debt then First Capitol, with our debt recovery team, will be able to do just that. Contact us today if you need help collecting what you deserve.